+ A permanent steel building used for the overhaul of dewatering systems (engines, pumps, and wellpoints) is placed in service on July 10 by a calendar year taxpayer for $240,000. It is sold almost 5 years later on May 15. a. What is the MACRS-GDS property class? b. Determine the depreciation deduction during each of the years involved. c. Determine the unrecovered investment during each of the years involved.
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- The following intangible assets were purchased by Hanna Unlimited: A. A patent with a remaining legal life of twelve years is bought, and Hanna expects to be able to use it for six years. It is purchased at a cost of $48,000. B. A copyright with a remaining life of thirty years is purchased, and Hanna expects to be able to use it for ten years. It is purchased for $70,000. Determine the annual amortization amount for each intangible asset.A permanent steel building used for the overhaul of dewatering systems (engines, pumps, and wellpoints) is placed in service on July 10 by a calendar-year taxpayer for $220,000. It is sold almost 5 years later on May 15. a. What is the MACRS-GDS property class?b. Determine the depreciation deduction during each of the years involved.c. Determine the unrecovered investment during each of the years involved.A permanent steel building used for the overhaul of dewatering systems (engines, pumps, and wellpoints) is placed in service on July 10 by a calendar-year taxpayer for $480,000. It is sold almost 5 years later on May 15. Click here to access the MACRS-GDS Property Classes Part a Part b — Your answer is partially correct. Determine the depreciation deduction during each of the years involved. ΕΟΥ Depreciation Deduction 4
- A portable concrete test instrument used in construction for evaluating and profiling concrete surfaces (MACRS-GDS 5-year property class) is purchased in December by a calendar-year taxpayer for $22,000. The instrument will be used for 6 years and be worth $2,000 at that time. a. Calculate the depreciation deduction for years 1, 3, and 6. b. If the instrument is sold in year 4, determine the depreciation deduction for years 1, 3, and 4.A building used for the overhaul of dewatering systems (MACRS-GDS 39-year property) is placed in service on October 10 by a calendar-year taxpayer for $140,000. It is sold almost 4 years later on August 15. Determine the depreciation deduction during years 1, 3, and 5 and the book value at the end of years 1, 3, and 5 using MACRS-GDS allowances.18. Ryland Company, a calendar year taxpayer, purchased commercial realty for $2 million and allocated $200,000 cost to the land and $1.8 million cost to the building. Ryland placed the real estate in service on May 21. a. Compute Ryland's MACRS depreciation with respect to the realty for the year of purchase. b. How would your answer change if Ryland placed the realty in service on September 2 instead of May 21? c. How would your answer to part (a) change if the building was a residential apartment complex instead of a commercial office?
- A digitally controlled plane for manufacturing furniture (MACRS-GDS 7-year property) is purchased on April 1 by a calendar-year taxpayer for $66,000. It is expected to last 12 years and have a salvage value of $5,000. Calculate the depreciation deduction during years 1, 4, and 8 using MACRS-GDS allowances.A tractor for over-the-road hauling is purchased for $90,000. It is expected to be of use to the company for 6 years, after which it will be salvaged for $4,000. Calculate the depreciation deduction and the unrecovered investment during each year of the tractor's life using MACRS-GDS allowances. a. What is the MACRS-GDS property class? ANSWER b. Assume the tractor is used for the full 6 years ANSWER of use. c. Assume the tractor is sold during the 4th year ANSWER d. Assume the tractor is sold during the 3rd year of use.Electric generating and transmission equipment is placed in service at a cost of $3,000,000. It is expected to last 30 years with a salvage value of $250,000.a. What is the MACRS-GDS property class? b. Determine the depreciation deduction and the unrecovered investment during each of the first 4 tax years.
- A tractor for over-the-road hauling is purchased for $90,000. It is expected to be of use to the company for 6 years, after which it will be salvaged for $4,000. Calculate the depreciation deduction and the unrecovered investment during each year of the tractor’s life using MACRS-GDS allowances. a. What is the MACRS-GDS property class? b. Assume the tractor is used for the full 6 years. c. Assume the tractor is sold during the 4th year of use. d. Assume the tractor is sold during the 3rd year of use.A permanent steel building used for the overhaul of dewatering systems (engines, pumps, and wellpoints) is placed in service on July 10 by a calendar-year taxpayer for $500,000. It is sold almost 5 years later on May 15. Part a What is the MACRS-GDS property class? 39-Year Property Part b Determine the depreciation deduction during each of the years involved. EOY Depreciation Deduction 0 1 $enter a dollar amount 2 $enter a dollar amount 3 $enter a dollar amount 4 $enter a dollar amount 5 $enter a dollar amount 6 $enter a dollar amount Part c Determine the unrecovered investment during each of the years involved. EOY Unrecovered investment 0 1 $enter a dollar amount 2 $enter a dollar amount 3 $enter a dollar amount 4 $enter a dollar amount 5 $enter a dollar amount 6 $enter a dollar amountA piece of equipment purchased for $560 will be depreciated straight line to zero. The IRS classifies this asset as having an eight-year life. The equipment will be used in a five-year project. The salvage value at the end of the project will be $40. Find the book value of the equipment at the end of year three. a.)208 b.)312 c.)210 d.)336 e.)350 f.)224